CEI Florida Insurance Director Urges Approval of “Crash Tax” Ban

FL, June 15, 2009—The Director of
the Florida Insurance Project at the Competitive Enterprise Institute today
urged Gov. Charlie Crist to sign a bill that would end “crash taxes”—fees that
some local governments charge to people involved in automobile accidents.

Shortly before the end of its 2009 session, the Florida State Legislature
approved S.B. 2282, a bill that would prohibit local governments from charging
additional fees to people involved car accidents. Around the state, more than
20 local governments – from Tallahassee to Hialeah – have adopted
ordinances imposing “accident response fees” that can range from $100 to $4,000
per incident. The fees, in theory, cover the cost of ambulance, police, and
fire response to accidents.

“This is a matter of common sense. Someone who is involved in an auto accident
has to pay for car repairs, medical bills, and—very likely—higher auto
insurance premiums,” said CEI Florida Insurance Project Director Christian Cámara. “Local,
property, and state taxes already cover emergency response services. It’s wrong
to impose extra taxes on victims. Even when insurance companies pick up the
bill, everyone in Florida
pays for these fees through higher auto insurance rates. These taxes need to

CEI is a non-profit, non-partisan
public policy group dedicated to the principles of free enterprise and limited
government.  For more information about
CEI, please visit our website at www.cei.org.